Gloster spurts after board's nod for bonus issue

Gloster surged 6.86% to Rs 595.20 at 12:59 IST on BSE after the company said its board of directors approved 1:1 bonus issue of shares.

The announcement was made after market hours yesterday, 29 March 2016.

Meanwhile, the S&P BSE Sensex was up 312.45 points or 1.25% at 25,212.91.

On BSE, so far 9,088 shares were traded in the counter as against average daily volume of 2,282 shares in the past one quarter. The stock hit a high of Rs 665 and a low of Rs 580 so far during the day. The stock had hit a record high of Rs 768 on 29 December 2015. The stock had hit a 52-week low of Rs 166 on 22 April 2015. The stock had outperformed the market over the past one month till 29 March 2016, surging 44.83% compared with Sensex's 8.25% rise. The scrip had, however, underperformed the market in past one quarter, sliding 9.21% as against Sensex's 4.52% fall.

The small-cap company has equity capital of Rs 5.23 crore. Face value per share is Rs 10.

Meanwhile, Gloster's board of directors at a meeting held yesterday, 29 March 2016, approved the proposal for the amalgamation of company with Kettlewell Bullen & Company (Kettlewell) with effect from 1 January 2015. Kettlewell is a non-banking financial company (non-deposit accepting) registered with the Reserve Bank of India. It is one of the promoter group companies of Gloster. Under the scheme, the shareholders of Gloster (excluding Kettlewell) shall be issued four equity shares of Kettlewell for every five equity shares held in Gloster. The scheme of amalgamation is expected to enable better realisation of potential of the businesses of the companies, yield beneficial results and enhanced value creation for the companies and their respective shareholders, Gloster said. The scheme shall be subject to the approval of the stock exchange, shareholders and the High Court of Calcutta and other statutory authorities.

Gloster's net profit rose 173.7% to Rs 6.35 crore on 41.9% growth in net sales to Rs 105.47 crore in Q3 December 2015 over Q3 December 2014.

Gloster is a leading manufacturer & exporter of all types of jute & jute allied products, woven & non-woven jute geotextiles, treated fabric-rot proof, fire retardant, jute products for interior decoration & packaging of industrial & agricultural produce.

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